A leading premium coffee company and lifestyle brand helping veterans is going public with a SPAC merger announced Tuesday.
The SPAC Deal: Black Rifle Coffee Company announced a merger with SilverBox Engaged Merger Corp I SBEA. The deal values the company at a pro forma enterprise value of $1.7 billion.
The company will donate over 530,000 shares, valued at $5.3 million, to the BRCC Fund, a company foundation that supports the mission of bettering the lives of veterans.
Current SBEA shareholders will own 18% of the company after the merger.
About Black Rifle Coffee Company: Founded and led by veterans, Black Rifle Coffee Company counts a total of more than 1.9 million lifetime customers and over 270,000 active coffee club subscribers.
The company said it has a NPS score of 78 and strong brand awareness. The company has over 9.1 million followers across its social media platforms.
“From the time I was a one-man operation in my garage with nothing more than a 1-pound roaster, I wanted to use coffee as a means of bringing people together around the common idea of honoring those who serve this great nation,” Black Rifle Coffee Company CEO and Founder Evan Hafer said.
Black Rifle Coffee Company counts 50% of its employees as veterans or spouses of veterans.
The company sells its ready to drink coffee in several national retailers including Speedway, 7-Eleven, Sam’s Club, Walmart WMT, H-E-B, Publix, Bass Pro Shops and Cabela’s. Black Rifle Coffee Company is a top four brand in the ready to drink segment for convenience stores.
Related Link: November SPAC Merger Calendar: Upcoming Votes, Earnings, Stocks To Watch
Growth Projections: Black Rifle Coffee Company has revenue split 82% direct to consumers, 16% wholesale and 2% outposts. With the opening of additional outposts and more retail stores adding the products, the company sees the model shifting.
In 2023, the company projects revenue to be split 43% direct to consumer, 35% wholesale and 22% outposts.
The company expects to have 16 outposts open by the end of fiscal 2021. The company has seven Outposts, including four franchise locations, open today.
Black Rifle Coffee Company lists a goal of having 78 Outposts open in 2023.
The company expects to be in over 2,200 doors by the end of 2021 with a plan to grow this segment to over 7,000 in the future.
Financials: The company said it has a highly scalable platform. Black Rifle Coffee Company is projecting revenue to hit $230 million in fiscal 2021, up 40% year-over-year.
Black Rifle Coffee Company has a gross profit of $69 million in fiscal 2020 and is forecasting a gross profit of $92 million in fiscal 2021. The company has gross margins of around 40%.
The company grew revenue at a compounded annual growth rate of 67% from fiscal 2019 to fiscal 2021. Guidance calls for revenue to grow at a compounded annual growth rate of 37% from fiscal 2021 to fiscal 2023.
SBEA Price Action: SBEA shares were up 21.79% at $11.96 Tuesday morning.
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